St Lucia Country Summary

FATF Status

St Lucia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in St Lucia was undertaken in 2023. According to that Evaluation, St Lucia was deemed Compliant for 14 and Largely Compliant for 16 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Saint Lucia has established laws and agencies to combat corruption, including the Integrity in Public Life Act of 2004 and the appointment of a special prosecutor, though no cases have been pursued yet. The country faces challenges with human trafficking, drug trafficking, and financial crimes, with local gangs involved in various criminal activities, while the government maintains a firm stance against serious crime. Despite issues of corruption and inadequate transparency, St. Lucia participates in international treaties aimed at addressing organized crime and corruption.

Saint Lucia's economy is primarily driven by tourism, with real estate development and global business outsourcing also playing significant roles. The country is vulnerable to external shocks, including climate change and global economic downturns, but the International Monetary Fund (IMF) projects a growth rate of 2.4 percent by the end of 2024.

Saint Lucia's investment climate is characterized by a strong encouragement of foreign direct investment (FDI) across various sectors, particularly in infrastructure, tourism, and real estate development. The government offers several incentives, including tax holidays and waivers on import duties, to attract both domestic and foreign investors, while ensuring that foreign and local investors are treated equally. The state-run agency Invest Saint Lucia facilitates the investment process, providing a 'one-stop shop' for investors and promoting the country as an ideal investment location.